Results FY 2012
Schaeffler Group
Dr Juergen M. Geissinger, CEO
Klaus Rosenfeld, CFO
Herzogenaurach
March 21, 2013
Disclaimer
This presentation contains forward-looking statements. The words "anticipate", "assume", "believe", "estimate", "expect", "intend",
"may", "plan", "project", "should" and similar expressions are used to identify forward-looking statements. Forward-looking
statements are statements that are not historical facts; they include statements about Schaeffler Group's beliefs and expectations
and the assumptions underlying them. These statements are based on plans, estimates and projections as they are currently
available to the management of Schaeffler AG. Forward-looking statements therefore speak only as of the date they are made, and
Schaeffler Group undertakes no obligation to update any of them in light of new information or future events.
By their very nature, forward-looking statements involve risks and uncertainties. These statements are based on Schaeffler AG
management's current expectations and are subject to a number of factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements. Actual results may differ from those set forth in the forwardlooking statements as a result of various factors (including, but not limited to, future global economic conditions, changed market
conditions affecting the automotive industry, intense competition in the markets in which we operate and costs of compliance with
applicable laws, regulations and standards, diverse political, legal, economic and other conditions affecting our markets, and other
factors beyond our control).
This presentation is intended to provide a general overview of Schaeffler Group’s business and does not purport to deal with all
aspects and details regarding Schaeffler Group. Accordingly, neither Schaeffler Group nor any of its directors, officers, employees
or advisers nor any other person makes any representation or warranty, express or implied, as to, and accordingly no reliance
should be placed on, the accuracy or completeness of the information contained in the presentation or of the views given or implied.
Neither Schaeffler Group nor any of its directors, officers, employees or advisors nor any other person shall have any liability
whatsoever for any errors or omissions or any loss howsoever arising, directly or indirectly, from any use of this information or its
contents or otherwise arising in connection therewith.
The material contained in this presentation reflects current legislation and the business and financial affairs of Schaeffler Group
which are subject to change and audit.
Page 2
Schaeffler
Results FY 2012
March 21, 2013
Agenda
Overview
Dr Geissinger
Operational Performance
Dr Geissinger
Financial Results 2012
Rosenfeld
Financing and Capital Structure
Rosenfeld
Dr Geissinger
Outlook 2013
Page 3
Schaeffler
Results FY 2012
March 21, 2013
1 Overview
A strong history of above average growth and sector leading margins
Sales 2003 – 20121)
EBIT and EBITDA 2003 – 20121)
in EUR bn
in EUR bn
11.1
~6%
EBIT ~8%
10.7
CAGR 2003-2012
9.5
9.0
2.2
CAGR 2003-2012
1.7
8.9
1.7
2.1
1.7
1.5
1.7
1.4
8.3
1.5
1.3
7.9
7.3
1.4
1.1
1.1
7.3
1.1
1.0
1.0
6.8
0.7
2.0
0.8
0.4
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
Sales
growth -0.1% 7.2%
8.7%
4.7%
8.4% -1.2% -17.6% 29.4% 12.6%
4.0%
1) 2003-2005 according to German Commercial Code (HGB),
2006-2012 according to IFRS
Page 4
2003
2005
2006
2007
2008
2009
2010
2011
2012
EBITDA
margin
18.7% 19.0% 19.5% 19.9% 19.4% 19.4% 15.0% 22.1% 21.0% 18.3%
18.8%
EBIT
margin
9.8% 10.8% 12.2% 12.9% 12.6% 11.7% 6.1% 15.9% 15.8% 12.7%
EBIT
Schaeffler
2004
Results FY 2012
EBITDA
March 21, 2013
1 Overview
Successful organic growth over 10 years
Capital expenditures 2003 – 20121)
Headcount 2003 – 2012
in EUR mn
in thousands
1,000
931
949
919
846
827
80,000
~4%
764
800
76.1
CAGR 2003-2012
74.0
70,000
600
599
66.3
604
62.4
61.5
59.6
60,000
386
400
67.5
66.0
57.9
56.1
325
50,000
200
40,000
in %
of
sales
2003
2004
2005
2006
2007
2008
2009
2010
8.8%
8.3%
9.6% 11.2% 10.2% 10.7% 4.4%
4.1%
2011
7.9%
2012
2003
2004
7.4%
1) 2003-2005 according to German Commercial Code (HGB),
2006-2012 according to IFRS
Page 5
Schaeffler
Results FY 2012
March 21, 2013
2005
2006
2007
2008
2009
2010
2011
2012
1 Overview
2012 – A successful year in a challenging environment
Growth
Profitability
Target 2012
Actual 2012
Sales growth
4%
4.0%
EBIT Margin
> 13 %
12.7%
CAPEX
6-8 %
of Sales
7.7%
of Sales
Free Cash Flow
Sustainably
positive
+381 mn
Target 2012
Quality
Actual 2012
Innovation
Target 2012
Actual 2012
Target 2012
Actual 2012
Quality policy
Further
improve
Numerous
quality awards
R&D expenses
~5%
of Sales
5.3%
of Sales
Employees
> 2,500 new
jobs
~ 2,000 new
jobs created
Innovation
management
Maintain leading
position in patent
applications
Rank 4
in Germany
Page 6
Schaeffler
Results FY 2012
March 21, 2013
Agenda
Overview
Dr Geissinger
Operational Performance
Dr Geissinger
Financial Results 2012
Rosenfeld
Financing and Capital Structure
Rosenfeld
Dr Geissinger
Outlook 2013
Page 7
Schaeffler
Results FY 2012
March 21, 2013
2 Operational performance
Automotive – Continuous growth in all businesses
Sales Automotive
in EUR mn
+7%
vs. FY 2011
7,157
7,663
6,325
Strong sales growth in North America and Asia/Pacific,
growth in Germany, slight decrease in rest of Europe
Particularly high growth rates in dry double clutches,
continuously variable transmissions (CVT) and camshaft
phasers
Strong growth rates with innovative products such as ball
screw drives for electromechanical power steerings
990
1,074
998
2010
2011
2012
EBIT
15.7%
Margin
15.0%
13.0%
EBIT
Higher R&D expenses (especially projects in the field of
electric mobility) affected EBIT
Continuous innovations for modern and energy-efficient
mobility solutions
Page 8
Schaeffler
Results FY 2012
March 21, 2013
2 Operational performance
Automotive – Sales growth ahead of overall market
+6%
Europe
(without Germany)
Germany
World
+7%
+6%
-1%
+4%
Asia/Pacific
(with and w/o Japan)
+22%
-3%
-8%
North America
South America
Production of light
vehicles in 2012 vs. 2011
Production of light
vehicles in 2012 vs. 2011
(IHS Global Insight)
excluding Japan
Sales growth
Schaeffler Automotive1)
2012 vs. 2011
(by location of
customer)
+21%
+18%
0%
+10%
-12%
+8%
-7.0%
1) Schaeffler Automotive sales growth by region is not necessarily an indication of actual end-customer demand by region (e.g. German sales includes
components and systems sold to customers in Germany who ultimately export the final product to customer locations in North and South America as well as Asia/Pacific)
Page 9
Schaeffler
Results FY 2012
March 21, 2013
2 Operational performance
Industrial – Market-driven slow-down in major sectors
Sales Industrial
Weakening momentum in key industrial
market sectors
in EUR mn
-2%
vs. FY 2011
3,463
3,401
Sales increase in Heavy Industries, Aerospace and Consumer
Products, market-driven sales decrease in all other sectors
3,002
Aftermarket business stable
EBIT
519
615
415
2010
2011
2012
17.8%
12.2%
EBIT
Margin 17.3%
Sales in North America and Eastern Europe increased by
more than 10%, whereas sales in other regions decreased
Implementation of global Schaeffler Technology Centers
provides improved engineering service for our customers
Page 10
Schaeffler
Results FY 2012
March 21, 2013
2 Operational performance
Industrial – Key markets with different growth dynamics
Market development
Sales development of key industrial business units
Other ~10%
Global manufacturing output weakened
throughout the year – strong regional
differences
Power Transmission
Production Machinery
Aerospace
Wind Power
Industrial
Aftermarket ~40%
North American expansion has been the
source of global manufacturing growth
Heavy Industries
Sales 2012 vs. 2011
Sharp declines of investment activity in
China, especially in the wind and railway
sectors
Wind
Investment activity particularly subdued in
Europe, excess capacities in key sectors
Page 11
Schaeffler
Railway
Results FY 2012
March 21, 2013
2 Operational performance
Why we are successful
3 main success factors
1
Continuous global expansion:
Growing into attractive markets
17 new plants and plant
extensions (e.g. Russia)
Doubling share in Asia
2
Superior products and services:
Offering the right components and
systems based on best-in-class
innovation platform
Best-in-class innovation platform
Best positioned for future mobility
trends
Best customer service through
global network
Outstanding operational excellence:
First-class quality and manufacturing
Special know-how in materials,
design, and manufacturing
Outstanding quality recognized
by our customers
3
Page 12
Schaeffler
Results FY 2012
March 21, 2013
2 Operational performance
Global expansion – 17 new plants and plant extensions
1
New plants and plant extensions 2012 – 2014
Key aspects
70 plants
worldwide
1
Irapuato, Mexico
9
Hosur, India
2
Kysuce, Slovakia
10
Rayong, Thailand
11
BienHoa City, Vietnam
12
Nanjing, China
3
Skalica, Slovakia
4
Szombathely, Hungary
13
Jangan, Korea
5
Brasov, Romania
14
Yinchuan, China
6
Ulyanovsk, Russia
15
Taicang 5, China
7
Savli, India
16
Taicang 6, China
8
Pune, India
17
Suzhou, China
Page 13
Schaeffler
Results FY 2012
March 21, 2013
Germany
24
Europe
19
Asia / Pacific
13
North America
12
South America
2
2 Operational performance
1
Global expansion – Doubling share in Asia and increasing local content
2007
2012
2015
South
America
North
5.3%
America
America
North
5.0%
America
13.6%
America
North
~5%
America
~15%
15.0%
50-55%
13.5%
23.1%
67.6%
56.9%
25-30%
Europe
Europe
Total sales:
EUR 9.0 bn
Page 14
South
South
Total sales:
EUR 11.1 bn
Schaeffler
Results FY 2012
March 21, 2013
2 Operational performance
2
Products and services – Best-in-class innovation platform
Examples of new products in 2012
Highlights
Wheel bearing featuring an
efficient lip seal for friction
reduction
R&D expenses
Active magnetic bearing
5% of sales
Solutions for engine start-stop
systems: permanently
engaged starter
New patent applications
1,854
All-wheel drive disconnect
clutch to reduce fuel
consumption
Page 15
Schaeffler
Results FY 2012
March 21, 2013
2 Operational performance
2
Products and services – Best positioned for future mobility trends
Efficient Future Mobility –
Schaeffler North America Demonstration Vehicle
Fuel reduction in %
City
Highway
Belt Drive Friction Optimization
1.0
1.0
Valve Train Friction Optimization
0.5
0.5
Balance Shaft Bearings
0.6
1.0
Thermal Management Module
1.0
1.0
Adaptive Grill Shutters
0.2
0.8
Engine Start-Stop
6.0
2.0
AWD Disconnect
2.0
6.0
Wheel Bearings Optimization
0.5
1.0
TC with Centrifugal
Pendulum-type Absorber
3.0
1.0
~15
~14
Technology
Developed in North America for market-specific demands
and customer requirements
Showcases Schaeffler solutions for optimizing North
American combustion engines and drive trains
Total:
Additional fuel savings potential of up to 14-15%
Page 16
Schaeffler
Results FY 2012
March 21, 2013
2 Operational performance
2
Products and services – Best customer service through global network
Schaeffler Technology Centers
Local
knowledge
Strong local presence
Germany: 6
Europe w/o Germany: 10
North & South America: 3
Asia / Pacific: 3
Premium on-site support
Defined Engineering and Service
portfolio
Global Expert Networks
Global
Technology
Network
Worldwide collaboration
Interdisciplinary knowledge transfer
Combines worldwide know-how
Global
expertise
Schaeffler Global Technology Network
Combined global expertise and local knowledge for optimal customer performance
Page 17
Schaeffler
Results FY 2012
March 21, 2013
2 Operational performance
3
Operational excellence – First-class quality and manufacturing
Highlights
Special know-how in …
32 Awards
… basic materials (steel)
… inhouse tools design
for best supplier in 2012
a.o. from Nissan, Toyota, GM,
Gildemeister, Goldwind
… surface treatment
Page 18
… low cost precision
manufacturing
Schaeffler
Results FY 2012
March 21, 2013
Agenda
Overview
Dr Geissinger
Operational Performance
Dr Geissinger
Financial Results 2012
Rosenfeld
Financing and Capital Structure
Rosenfeld
Dr Geissinger
Outlook 2013
Page 19
Schaeffler
Results FY 2012
March 21, 2013
3 Financial results 2012
Solid results on all levels
Q4 2012
Q4 2011
in EUR mn / %
in EUR mn
in EUR mn
in EUR mn / %
10,694
+4.0 %
2,703
2,612
+3.5 %
2,031
2,243
-212 mn
432
473
-41 mn
18.3 %
21.0 %
-2.7 % pts.
16.0 %
18.1 %
-2.1 % pts.
1,413
1,689
-276 mn
269
340
- 71 mn
12.7 %
15.8 %
-3.1 %
10.0 %
13.0 %
-3.0 % pts.
Net income
872
889
-1.9 %
141
146
-3.4 %
Free cash flow
381
319
+62 mn
259
90
+169 mn
Leverage ratio
3.2x
3.0x
+0.2
3.2x
3.0x
+0.2
Sales
EBITDA
EBITDA margin
EBIT
EBIT margin
Page 20
FY 2012
FY 2011
in EUR mn
in EUR mn
11,125
Schaeffler
Results FY 2012
March 21, 2013
3 Financial results 2012
Sales up 4%
Sales
Sales by region1)
in EUR mn
in % and y-o-y growth
+4.0%
vs. FY 2011
Germany
Asia/Pacific
+2%
+10%
2,697 2,682 2,703
2,612
2,402
2,858
2,794 2,770
2,703
2,452 2,481
South America
2,160
-11%
North America
+18%
Europe (w/o Germany)
-2%
9,495
10,694
11,125
Sales by division
in EUR mn
Q1
Q2 Q3
Q4
2010
Q1 Q2 Q3
Q4
2011
Q1
2012
Gross profit margin:
31% 32% 33% 30%
32% 30% 31% 28%
FY 2012
FY 2011
Automotive
7,663
7,157
+7.1%
Industrial
3,401
3,463
-1.8%
Other
61
74
-13 mn
Total
11,125
10,694
+4.0%
Q2 Q3 Q4
31% 30% 31% 27%
1) Market view (= location of customers)
Page 21
Schaeffler
Results FY 2012
March 21, 2013
3 Financial results 2012
Sales: Automotive up 7.1% – Industrial down 1.8%
Sales Automotive
Sales Industrial
in EUR mn
in EUR mn
+7.1%
vs. FY 2011
1,821
1,768 1,8141,754
1,938 1,904 1,919 1,902
-1.8%
1,608 1,598 1,628
vs. FY 2011
1,491
905
748
810 803
856 877 876 854
868
840 788
641
6,325
Q1
Q2 Q3
Q4
2010
Q1 Q2
Q3 Q4
3,002
7,663
7,157
Q1
Q2 Q3
Q1 Q2
Q4
Q3 Q4
2010
3,463
Q1 Q2
Q3 Q4
2011
3,401
Q1 Q2 Q3
Q4
2012
2011
2012
Gross
profit 29% 29% 31% 27%
margin
29% 27% 28% 25%
28% 28% 29% 26%
Gross
profit 37% 39% 39% 37%
margin
39% 36% 38% 34%
39% 36% 36% 28%
EBIT
margin 16% 17% 16% 14%
17% 15% 16% 12%
13% 14% 14% 12%
EBIT
margin 15% 18% 18% 18%
20% 17% 20% 14%
17% 14% 12% 4%
Page 22
Schaeffler
Results FY 2012
March 21, 2013
3 Financial results 2012
EBIT-margin 12.7%
EBIT
EBIT
in EUR mn
in EUR mn
+431
1,689
-276 mn
-373
vs. FY 2011
472
404 398
-34
1,413
-57
-145
466
411
401
372
340
335
379 364
EBIT
Sales
FY 2011
269
EBIT
margin
1,509
-98
1,689
COGS
R&D
Selling
Admin
Other
15.8%
EBIT
FY 2012
12.7%
1,413
EBIT by segment
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
2010
2011
2012
15.5% 16.8% 16.2% 15.0%
17.5% 15.3% 17.2% 13.0%
14.0% 13.6% 13.1% 10.0%
in EUR mn
FY 2012
EBIT
FY 2011
EBIT
in %
FY 2012
margin
FY 2011
margin
Automotive
998
1,074
-7.1
13.0
15.0
Industrial
415
615
-32.5
12.2
17.8
1,413
1,689
-16.3
12.7
15.8
EBIT margin
15.9%
15.8%
12.7%
Total
Page 23
Schaeffler
Results FY 2012
March 21, 2013
3 Financial results 2012
Net income EUR 872 million
Net income¹) 2012
Net income¹)
in EUR mn
in EUR mn
438²)
11,125
147
176
236
203
146
39
889
-9,712
554
-419
-357
-676
1
Financial
result
2
3
Taxes/
Investment
minorities
result
1) Net income attributable to the shareholders of the parent company
Page 24
872
One-off
dilution loss of
EUR -396 mn
872
EBIT
141
63
1,413
Costs
226
102
97
Sales
269
Schaeffler
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
2010
2011
2012
Net
income
2) Q1 2011 result includes mark-to-market gains from interest rate derivatives
of EUR 155 mn
Results FY 2012
March 21, 2013
3 Financial results 2012
1
Cash interest EUR 519 million
Interest result¹)
Composition of interest result¹)
in EUR mn
in EUR mn
676
Interest expenses financial debt
25
91
519
25
563
66
310
287
240
214
231
210
174 175
141
117
119
384
810
1
733
676
113
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
2010
2011
2012
Non-Cash
Interest
result
(P&L)
Mark-tomarket
interest
rate
derivatives
1) For presentation purposes negative results are shown as positive figures
Page 25
Schaeffler
Results FY 2012
March 21, 2013
22
Cash
Cash Hedging Transaction
Other Amortization Accrued Cash
accrued transaction interest interest Interest
&
costs
costs
(mainly
interest,
result expenses others
bonds)
financial
mainly
debt
pension
(loans)
expense
3 Financial results 2012
2
At equity result EUR 554 million
Net income Continental
At equity result from Continental
in EUR mn
in EUR mn
2012
2011
483
449 432
368
348
315
228
213
211
121
14
576
1,242
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
2010
2011
Sales 5,997 6,658 6,490 6,903
EBIT 494
Page 26
517
365
559
647
636
Q3
Q4
Q1
Q2
Q3
Q4
368
315
211
348 1,242 483
520
449
432 1,884
Conti shares
(per 31/12/2012: 155
36,14%)
120
76
126
477
174
189
162
156
681
PPA
-49
-44
-42
-31
-166
-38
-40
-38
-39
-155
0
13
0
0
13
0
0
0
27
27
106
89
34
95
324
136
149
124
144
553
Net Income
Continental
Q2 Q3 Q4
At Equity
Result
2012
7,346 7,533 7,714 7,912
634
Q2
Dilution Loss/
Other
1,884
Q1
Q1
520
680
8,320 8,187 8,134 8,096
766
843
745
Schaeffler
720
Results FY 2012
March 21, 2013
FY
FY
3 Financial results 2012
3
Taxes EUR 407 million
Taxes¹)
Tax rate reconciliation
in EUR mn
in EUR mn
FY 2012
FY 2011
1,291
1,280
361
358
Addition / reduction due to deviating
local tax bases
10
-1
Foreign / domestic tax rate differences
-5
-4
Non-recognition of deferred tax assets
-1
4
196
122
-154
-90
Taxes for previous years
12
2
Other
12
-13
407
378
Net income before tax
153
Expected tax expense
136
117
108
88
79
64
64
82
84
55
32
277
Q1
Q2
Q3
378
Q4
Q1
Q2
2010
Non-deductible expenses
407
Q3
Q4
Q1
Q2
2011
Q3
Q4
2012
EBT²
Tax rate²
EBT²
Tax rate²
EBT²
Tax rate²
699
40%
956
39.5%
737
55.2%
Result from associated company
accounted for at equity
Reported tax expense
1) For presentation purposes, results are shown as positive figures
2) Excluding result from associated companies accounted for at equity
Page 27
Schaeffler
Results FY 2012
March 21, 2013
3 Financial results 2012
Free cash flow EUR 381 million
EBITDA
Free cash flow FY 2012
in EUR mn
in EUR mn
259
152
137
90
66
92
11
-107
613
553 545
484
80
605
549
552
515
Q1
2,031
530 520
Q2
Q3
2011
Q1
Q4
Q2
Q3
2012
Q4
-24
473
432
-860
+81
381
-584
2,097
2,243
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
2010
2011
-263
2,031
Q1
Q2 Q3 Q4
EBITDA
Net
working
capital
Capex
2,243
-150
-773
2012
Interest Dividends
payments
Taxes1)/
Free
other cash flow
EBITDA margin in %
22.4 23.0 22.2
20.8
22.7 20.6 22.4 18.1
19.2 19.0
1,381 1,701 1,899 2,097
2,226 2,225 2,285 2,243
2,179 2,157 2,072 2,031
18.8 16.0
2011
-673
0
-328
LTM EBITDA
Page 28
Schaeffler
1) 'Income taxes paid' as cash out of EUR -226 mn (2011: EUR -238 mn)
Results FY 2012
March 21, 2013
319
3 Financial results 2012
Working capital and capex stable
Working Capital
Capex spent2)
in EUR mn
in EUR mn
2,547 2,562
2,642
2,667
2,723 2,677
2,432
2,411
259
2,424 2,405 2,325
250
2,268
222 200
206
188
188
162
120
76
72
51
361
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
2010
2011
in % 29.2 28.8 26.8 24.5
of
sales1)
25.4 24.8 25.2 22.5
Q1
Q2 Q3 Q4
Q1 Q2 Q3 Q4
2010
2011
in %
2.4
of
sales
3.0
3.1
3.8%
1) Calculation based on LTM sales
Page 29
Inventories
Schaeffler
2) Cash view
Results FY 2012
860
Q1 Q2 Q3 Q4
2012
24.3 24.8 24.3 21.9
773
March 21, 2013
6.5
4.4
7.0
7.6
7.2%
Q1
Q2 Q3 Q4
2012
9.9
8.7
7.9
7.2
7.7%
7.0
3 Financial results 2012
Net debt down – Leverage ratio stable
Net financial debt / Leverage ratio¹)
Available funds
in EUR mn
in EUR mn
-336 mn
7,145
6,020
6,124
5,930
7,088
7,164 7,094
6,940 6,828
+235 mn
6,069
1,481 1,475
1,325
1,190
5,763 5,744
1,049
1,243
1,140
1,093
1,141 1,165
1,376
1,244
4.4x
3.5x
3.0x
2.7x
Q1
Q2
Q3
Q4
2.7x 2.7x
Q1
2010
584
3.0x
600
420
Q3
Q4
3.2x 3.2x 3.2x 3.2x
280
Q1
266
740
733
2012
6,482 6,422 7,645 7,485
358
353
500
242 323
Q2 Q3 Q4
2011
Gross 6,468 6,514 6,503 6,477
debt
Cash
448
position
Q2
2.9x
397
Leverage ratio (Net financial debt / LTM EBITDA)
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
Q1 Q2 Q3 Q4
2010
2011
2012
7,455 7,412 7,238 7,261
291
318
298
433
Revolving Facility and Ancilliary Lines
Shareholder loans
1) Excluding shareholder loans
Page 30
Schaeffler
Results FY 2012
March 21, 2013
Cash and cash equivalents
Agenda
Overview
Dr Geissinger
Operational Performance
Dr Geissinger
Financial Results 2012
Rosenfeld
Financing and Capital Structure
Rosenfeld
Dr Geissinger
Outlook 2013
Page 31
Schaeffler
Results FY 2012
March 21, 2013
4 Financing and capital structure
Major refinancing steps in 2012 and 2013
Five major steps
Step 1
Step 2
Step 3
Step 4
Step 5
Page 32
01/12
06/12
€8.0 bn refinancing of Senior debt
Placement of €2.0 bn of bonds and €1.4 bn of institutional loans
Placement of €326 mn retail/employee bond
Bank syndication closed
09/12
Reduction of Schaeffler Holding liabilities by approx. €1.6 bn
Refinancing of Junior debt
12/12
Amendment of €1.6 bn Senior Term Loan Facility B2
Improvement of covenant, repayment and structural flexibility
02/13
Repricing of €1.6 bn Facility B2
Upsizing by approx. €250 mn to partially repay Facility A
Schaeffler
Results FY 2012
March 21, 2013
4 Financing and capital structure
Established name with strong track record and performance
as of
March 2013
Maturity profile1)
Institutional loans trading above par2)
in EUR mn
7,000
~€2.2 bn
6,000
Senior Term Loan A
3 years
5,000
~€0.5 bn
SFA
2) YTM (as of March 15): TLC EUR: 4.68%, TLC USD: 4.08%
Senior Term Loan B1 – 5 years
4,000
Institutional Loan C (EUR/USD)
3,000
5 years
2,000
High Yield Bond 2017 (EUR/USD)
5 years
1,000
High Yield Retail Bond – 5 years
Bonds outperforming high-yield markets3)
~€1.9 bn
~€1.3 bn
~€0.3 bn
Bonds
~€0.8 bn
High Yield Bond 2019 (EUR/USD) – 7 years
HY1 HY2 HY1 HY2 HJ1 HY2 HY1 HY2 HY1 HY2 HY1 HY2 HY1 HY2 HY1
2012
2013
2014
2015
2016
2017
2018
2019
3) Price (as of March 15): EUR ’17 (6.75%): 109.375, EUR ’17 (7.75%): 113.75,
EUR’19 (8.75%): 114.50, USD ’17 (7.75%): 113.00, USD ’19 (8.50%):
113.50
1) Without Revolving Credit Facility of about EUR 1.0 bn
Page 33
Schaeffler
Results FY 2012
March 21, 2013
4 Financing and capital structure
Structural flexibility increased
Corporate & financing structure
Chart simplified
for illustration
purposes
Rating improved
S&P upgrades corporate and issue rating from 'B' to
'B+' (as of Aug 9, 2012)
Holding
Schaeffler
Holding
GmbH & Co. KG
Moody's upgrades corporate rating from 'B2' to 'B1'
and issue rating from 'B1' to 'Ba3'
(as of Sep 27, 2012)
100%
Schaeffler
Verwaltungs
GmbH
Junior Term
Loan/Bond
Structural flexibility increased
100%
'Amendment by Refinancing' of Senior Facilities
Agreement in Dec 2012, enhancing covenant,
repayment and structural flexibility
Schaeffler Group
Free
float
Schaeffler AG
Borrower change became effective on Dec 31, 2012
13.8%
36.1%
100%
50.1%
Financing cost reduced
Loans
Schaeffler
Continental AG
Successful repricing of EUR 1.6 billion term loan in
February 2013
NewCo
100%
Bonds
Page 34
Schaeffler
Finance
B.V.
Margin and floor reduction by a total of 175 bps to
E+3.75%, 1.00% floor (from E+5.00%, 1.50%) and
L+3.25%,1.00% (from L+4.75%, 1.25%)
100%
Schaeffler
Technologies
AG & Co. KG
Schaeffler
Results FY 2012
March 21, 2013
Agenda
Overview
Dr Geissinger
Operational Performance
Dr Geissinger
Financial Results 2012
Rosenfeld
Financing and Capital Structure
Rosenfeld
Dr Geissinger
Outlook 2013
Page 35
Schaeffler
Results FY 2012
March 21, 2013
5 Outlook 2013
Guidance 2013
Growth
Profitability
Target 2013
Target 2013
Sales growth
~4%
EBIT margin
~13 %
Capex
5-7 % of sales
Free cash flow
Sustainably positive
Quality
Innovation
Target 2013
Quality policy
Employees
Page 36
Target 2013
Further improve
~ 2,000 new jobs
Schaeffler
Results FY 2012
R&D expenses
~ 5 % of sales
Innovation
Maintain leading
position in patent
applications
March 21, 2013
Thank You
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